For Part 5 of our series on Upcoming Filing Deadlines and Annual Review for Exempt Organizations, we’re talking about written acknowledgments and quid pro quo disclosures.
As you may know, a written acknowledgment is the documentation your nonprofit organization must give a donor when a donor provides a donation over a certain value. If the donor receives goods and/or services in exchange for the donation, your nonprofit organization must also provide a quid pro quo disclosure.
At the end or beginning of each year, your nonprofit organization should review the written acknowledgement and quid pro quo letters it sends to its donors to ensure that such letters are in compliance with federal rules and regulations. If your nonprofit organization does not follow these rules, its donors may not be able to deduct their charitable contributions and the IRS may assess fines against the nonprofit. For more information, check out our recent posts on written acknowledgment letters and quid pro quo disclosures.
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